Problem Set #1: Mathematics and Calculus Primer
Name: __...._ __......__._..___.__--_..._
We will model economic phenomenon using functional relationships. Single variable cal-
culus, algebra and basic geometry skill will be important. I assume that you
Economics 335
Midterm 1 (10 Points)
NAME: _
(HINT: If you have trouble with mathematics, explain in words what your are trying to
accomplish at each step of your analysis.)
1. (1 point) Suppose that you work for Archer Daniels Midland Company. ADM has rec
Economics 335
Midterm # 1
(10 points)
NAME: _
1. (2 points) A cost function gives the minimum cost of producing a particular output quantity.
The cost function is an increasing function of output and is convex which means that costs
increase at an increas
Economics 335
Final Exam
(25 points)
Name: _
1. (3 points) Economists often collect data to measure the difference between price and marginal
cost in a market to determine whether market power exists. Explain how this technique can detect
a non-competitiv
Economics 335
Answers-Duopoly/Duopsony Problem Set
#1
Basic idea of this question is the same as Duopoly model, except in this case, they are
buyers instead of sellers.
a)
The description of this Cournot Duopsony Game is as following:
-Players: Beef packi
Economics 335
Price Discrimination
Answer Key
#1
(a) (page 1) You have to show with the aid of graphs that the monopolists total demand
is given by
0 if P 200
Q = Q1 + Q2 = 200 P if 100 P 200
250 1.5 P if 0 P 200
The following figures show the demand for
Economics 335
Problem Set 3
Prot-maximizing input choices
1. Consider the following production function for a rm using two inputs x, and x2 ,
q = 20x1 +14):2 2x12 +2x1x2 x22,
where q denotes the quantity of output that is produced.
(1 .a) What is the
Economics 335
Midterm # 1
Student ID: _
True or False (1/4 point each)
Please circle T if the statement is true and F if it is false.
1. T F Quasi-rents are the returns over and above the minimum return required to keep
an asset employed in its current us